SMRT takes turn for the worse as R&M costs jolt

Lower fuel costs couldn't lift the rail operations.

Unless rail financing reforms are implemented, the public transport operator would continue to sustain significant losses due to soaring repair and maintenance costs caused by its weak and unsustainable rail operations.

The loss from its aging railway system is a painful haymaker to SMRT as half of their earnings derive from their rail units.

"These reforms would improve the profitability of rail operations and free up capital through the transfer of rail assets to the Government," a report from RHB said.

"We do not expect rail reforms to be implemented anytime soon amidst pending government elections and ongoing bus reforms, which could keep regulators busy for next 12 months," RHB added.